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Thread: pharmaceutical industry

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    An Urch Guru Pundit Swami Sage catchamogh's Avatar
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    pharmaceutical industry

    The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.
    Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?
    (A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
    (B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
    (C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
    (D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
    (E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.

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    Within my grasp! Otori Takeo's Avatar
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    To me, B is perfect..

    It undermines the analogy claimed by the opponent.
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    An Urch Guru Pundit Swami Sage catchamogh's Avatar
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    if clinical trial takes 10 yrs then why 20yrs protection y patents need to be extended ?

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    the argument "assumes" that the 20yrs for pharm.. is equal to 20yrs for the other inds.
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    I'd say D...I think the opponent's main point is that the patent extention would stop new product development. And D says, well, the patent extention will not stop new product development in pharmaceutical industry because under this patent law everybody can launch new products as long as they are not copies of mine.

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    B.

    Official Answer please..

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    B seems perfect too.
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    I think this is a repost...

    Anyway B looks perfect...

    If trials take 10 years and patent is valid for 20 years that means companies would have 10 years to recover the development cost. According to argument it takes 20 years to recover the development cost from the sales and hence there is need to increase the limit of 20 years.

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    B is the best of the breed

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    "According to argument it takes 20 years to recover the development cost from the sales"...I don't see that in the argument...I'll stick to D Official Answer please...

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